Samsung could be number one, says analyst

Samsung could be on its way to become one of the largest smartphone manufacturers surpassing Apple to take more of the premium smartphone market share with the launch of its Galaxy Note 8. They are also concerned that less than 1 in 5 potential iPhone buyers will spend $1,000 or more on a new iPhone.

According to a note from a Barclay analyst Mark Moskowitz, it states that even though the Note 8 isn’t a “revolutionary” device, it still represents a return to stiff competition in the premium smartphone market, particularly between Samsung and Apple.

Moreover, the analysts also share doubts and predict challenges for Apple as according to one if its surveys, only 18% of possible iPhone buyers will plan to shell out $1,000+ for a new iPhone.

The note states, “While the device itself seems more evolutionary than revolutionary, we believe this launch represents the return of staunch competition into the premium segment ($700+ ASP) of the smartphone market following Samsung’s Note 7 debacle last year. For Apple, we are concerned that the company needs to meet momentous investor expectations following the expected launch of three new iPhone devices in September.

This could be made more challenging when considering that only 18% of potential iPhone buyers are willing to spend $1,000+ for a new device (Wireless Subscriber Survey; 08/09/17), which is below the 30-35% figure investors seem to be expecting”.

Also, Barclays says Apple will see more challenges (particularly abroad) as more consumers will move to the midrange market. The note forecasts that AAPL will continue to grow in the near term, but shares uncertainty for the long-term outlook.